M2 Cobalt Corp (CSE:MC) (OTCMKTS:MCCBF) told investors it had now started drilling at its Bombo and Bombo Northwest targets at Bujagali, Uganda after moving a second rig there, sending shares higher.
The Vancouver-based group expects the program at Bombo to comprise at least 1,000 metres of diamond drilling. It comes after an Induced polarization (IP) program, which helped finalize drill targets.
"We have always been excited about the potential of Bombo, especially given the historic work done there," said Simon Clark, CEO of M2 Cobalt.
"Our geochemical and geophysical programs have shown widespread surface and near-surface mineralization of highly anomalous nickel, copper and cobalt.
"We are delighted to be able to launch an initial drill program to test this ultramafic style of mineralization further as we look to build on the highly successful work done to date on these targets.
"There is growing demand for nickel sulphides as a critical ingredient in cathode formulation for lithium-ion batteries. The potential of Bombo in this regard, as well as for copper and cobalt, adds another dimension to this discovery."
The IP program at Bombo and Bombo NW highlighted several chargeable areas, which coincided with rock and soil nickel-cobalt-copper geochemical anomalies and magnetics.
In October, Clarke said the start of drilling in Uganda was a very exciting time for the company.
"The success of our phase 1 program, during which we discovered multiple large-scale targets with surface sampling up to 1.75 per cent cobalt, 0.91 per cent copper and 0.26 per cent nickel, has positioned us strongly for this initial phase of drilling," he said.
"It moves us closer to achieving our corporate objective of discovering and developing world-class deposits of cobalt and associated minerals."
In the phase 1 program, the company discovered multiple targets and three distinct styles of mineralization: volcanogenic massive sulphide (VMS) copper-cobalt at its Kilembe-area properties, Katanga-style sediment-hosted, copper-cobalt mineralization at Bujagali, as well as ultramafic nickel, copper and cobalt at Bombo.
On Tuesday, M2 Cobalt shares shot up in Toronto over 12% to $0.22.
Contact Giles Gwinnett at [email protected]
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